We do not doubt that most lawmakers who push for cigarette tax hikes sincerely believe it is the best way to solve a particular policy problem. Some may be concerned about public health and wish to dissuade smokers from smoking. Others may want to balance a state budget without spending cuts.

But the effects of well-intentioned cigarette excise taxes are not completely positive. Negative consequences include smuggling, “channeling,” counterfeiting and violence. We explored these topics in detail in our earlier study,[*] but we discuss them again briefly below.